Effective Total Rewards Program – A True Leverage and Differentiator for Businesses
Total Rewards, as an important strategic item in the Human Resources arsenal, is a relatively new introduction of the last decade or two. However, it has always been one of the most fundamental and potent tools of employee-employer engagement. The concept of Total Rewards is no different than the very first original barter system- that of an employee receiving something of value in return for their effort for the employer. Having said so, I must quickly add that the item/thing or aspect that an employee ‘values’ is an ever-changing universe of possibilities.
What motivates an employee today, may no longer be a lever of motivation for the same employee in a few years’ time in the future. Similarly, what motivates employees in one culture may not motivate the employees in a similar set-up in another culture. In today’s world of employment, the scope of Total Rewards has expanded to cater to the multitude of variables that come into play on account of workforce demographics, expectations of the workforce and the possibilities offered by the rapidly developing technology.
Total Rewards as per the World at Work model comprises of the following five components:
• Compensation
• Well-Being
• Benefits
• Development
• Recognition
While the element of ‘compensation’, commonly referred to as the ‘pay’ or ‘salary’ remains a very fundamental hygiene element when it comes to the employer-employee relationship, each of the other four elements have significant value for today’s employees. These elements have a significant value for the employer too.
For employees, it’s about ‘What do I get in return for my efforts, time, and application of skills?’ Similarly, for employers it’s about ‘What unique proposition do I have for my employees?’.
While HR experts, managers and leaders are usually the professionals who lead the science and art of total rewards, we must recognize that all great leaders, from all walks of life, use the concept and application of Total Rewards to their advantage making a great positive impact at a large scale. For instance, law and policy makers mandating new and wholesome aspects of Total Rewards in their economies. Such high-level impetus, as we have seen in the UAE in the recent past with respect to guidelines around flexi-time, work-life balance, shorter working week paves the way for greater business, social and economic prosperity. The businesses and companies which embrace these forward-thinking leadership guidance to make suitable adjustments to their internal policies and schemes gain significant competitive advantage by becoming an employer of choice with higher employee engagement and higher employee productivity.
People Prudent Consulting and HR Solutions specializes in Total Rewards Solutions and assists its clients make their Total Rewards offering a key competitive differentiator and advantage.